FEATURE

DESCRIPTION

Loan limit

• Upto Rs. 10.00 Million
  • Clean lending:  from Rs. 100,000/- to Rs. 1,000,000/-
  • Secured lending: from Rs. 1,000,001/- to Rs. 10,000,000/-

Under Punjab Green Development Program, the limit of a loan will remain the same. However, preference will be given to the micro-enterprises, ready to adopt the environment improving technology, having up to 10 numbers of employees. 

Purpose of loan

• Setting up of new business
• Balancing, Modernization and Replacement (BM&R) for existing businesses
• Working Capital

MSME Sector

• Manufacturing, Service, Trading, Agriculture and Live Stock
• (Environment Friendly / Quality Improving Micro Enterprises as defined above will also be considered under the Punjab Green Development Program)

Processing fee

Rs. 2000/- (non-refundable) at the time of submission of application

Tenure of loan / Repayment Period

From 02 to 05 years including a grace period

Grace period

Up to Six (06) Months (However, the markup will be charged during the grace period)

Type of loan

Term loan as per bank policy and working capital

Cost of Capital

Cost of Capital to be paid by Borrower:

• 4% for clean lending
• 5% for secured lending

Debt: Equity

80:20 (For males)

90:10 (Women, Transgender and Differently abled)

(Meaning thereby 20%  / 10% of the project cost will be invested by the borrower) 

Disbursement of loans

In installment(s) as per approved business plan

Security of loan

1.      Security for Clean Lending

i.      Security for loan limit from Rs. 100,000/- to Rs. 500,000/-

Personal Guarantee of the borrower along with net worth statement.

ii.      Security for loan limit from Rs. 500,001/- to Rs. 1,000,000/-

·     Personal Guarantee of the borrower along with at least one, Third Party guarantor with overall net worth collectively equal to size of the loan applied.

(Third Party should be a citizen of Pakistan and resident of the Punjab having a valid CNIC and must not be older than 55 years. Moreover, e-CIB of third party should be clean i.e. it should not have any overdue or write off history)

OR

·     Guarantee of Government employee of BS-10 and above alongwith personal guarantee of the borrower.

(Departmental gurantee of the government employee will be mandatory)

Net Worth / Wealth Description and Calculation Criteria:

·     Net Worth may be in the form of Tangible Asset i.e Property or Vehicle ownership and may be assessed as follows:

a.    Property may be valued at respective DC rate.

OR

b.   Property valuation may be established from Wealth Tax statement.

OR

c.    Evaluation by Pakistan Banks Association (PBA) approved evaluator/agent  

OR

d.   Vehicle valuation shall be invoice price less depreciation (10% for each passing year).

2.      Security for loan limit from Rs. 1,000,001/- to 10,000,000/-

 Mortgage of Assets

Asset description

a.    Residential / Commercial / Industrial / Agricultural Property / vehicle having clean title and clear access (acceptable to the bank) and valued by banks approved appraiser as per bank’s policy.

b.   The property should be in the name of borrower or blood relative of individual / proprietor / partners.

c.    Documentation shall be as per bank credit policy / legal division. Charge / hypothecation on fixed / current assets as per internal / external regulations.